Third of Institutional Investors

Third of Institutional Investors

Third of Institutions to Up Hedge Fund Investments

Hedge funds have not had as much trouble raising assets recently, at least not compared to pre-2009. Fundraising will likely continue on this pace as one third of institutional investors expect to increase their investments in hedge funds over the next 12 months.

Nearly a third of institutional investors plan to increase the amount of money they invest with hedge funds over the next 12 months, according to a new survey, in spite of one of the industry’s worst quarters ever.

Just 15 per cent of investors surveyed said they were looking to decrease their portfolio allocations to the $2,000bn industry, said the report, conducted by the alternative investment consultancy Preqin.

The findings come as a significant fillip for hedge funds, which have seen inflows dwindle in recent months on the back of huge performance-related losses in May and June.

The industry lost $30bn of investors’ money in the second quarter, according to data from Hedge Fund Research. After nearly $14bn of net inflows into funds in the first three months of the year, investment in hedge funds dropped to just over $9bn in the three months to the end of June. Source

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